Salary Sacrifice. A tax-efficient and cost-saving green fleet solution.

Transcription

1 Salary Sacrifice.

2 Salary Sacrifice. A tax-efficient and cost-saving green fleet solution.

3 Alphabet Salary Sacrifice. Satisfaction guaranteed for you and your employees. Salary Sacrifice is the perfect way to provide your employees with a company car or a car benefit.

4 By taking advantage of situations where Benefit-in-Kind tax is preferable to income tax, Salary Sacrifice saves money for both your company and your employees. What s more this will enhance your organisation s green credentials and minimise running costs owing to particular effectivity with cars that emit less than 120g/km of CO 2. Our solution can: deliver significant cost savings enhance your organisation s green credentials by encouraging drivers to choose the greenest cars support your company car scheme by attracting drivers currently receiving a cash allowance to take part in a more safety-compliant car scheme provide all employees, not only company car drivers, with a chance to acquire a new car at a lower price enhance employee benefits without increasing budgets or overheads How does it work. Tax incentives for environmentally-friendly vehicles mean that a number of cars are less expensive to acquire if employees take them as a company benefit instead of opting to buy them privately from taxed salary. Salary Sacrifice also works to your organisation s advantage, as the lower level of tax paid by the employee is reflected in lower Class 1A National Insurance Contributions from the employer. Alphabet meets all residual value risks by leasing the car to the employer under a normal Contract Hire arrangement. Leases can also include fixed-cost Early Termination Insurance and Motor Insurance for their duration, which helps manage risk and costs. Everybody benefits from efficient implementation. Alphabet offers support and advice on all aspects of setting-up and managing a Salary Sacrifice scheme. Your drivers simply log on to our secure website, where they can run as many car quotes as they like. If they have any questions, we will respond directly. Our system clearly shows your employees what their choices will cost them, from insurance to early termination insurance costs. As you have the final say on every agreement, we will assist you in staying in control of the scheme at all times. Deducting your employees salary contributions is straightforward, as we supply you with a formatted payroll report for each pay period.

5 A safer, greener, better solution. Salary Sacrifice offers an effective, easily implemented and managed solution from a company with an unparalleled reputation for providing high quality innovative car scheme solutions for company car driver and other employees. Employer Monthly Cost National Insurance saving on salary ( 46.75) National Insurance payable on car benefit Employer saving ( 19.31) Total Saving Employer saving over 36 months ( ) 1 The example shown is for illustrative purposes only. Calculation is valid at time of publication.

6 One convincing example. The example shows how an employee who earns 20,000 per annum and the employer can benefit from a Salary Sacrifice arrangement for a car priced at 17,000 and rated at 118g/km of CO 2, for three years and 30,000 miles 1. Compared with acquiring the car privately from taxed salary, the Salary Sacrifice arrangement saves the employee 4, and the employer during the term of the agreement. Employee Finance, service, maintenance, repairs, Early Termination Insurance and VAT disallowance Monthly Cost Motor insurance Total salary deduction Tax saving National Insurance saving on salary ( 40.18) Benefit-in-Kind tax payable Net cost to employee ( ) Typical Personal Contract Purchase quote for same vehicle (including maintenance and insurance) Employee saving ( ) Total saving payable Employee saving over 36 months ( 4,097.16) 1 The example shown is for illustrative purposes only. Calculation is valid at time of publication. Is Alphabet Salary Sacrifice right for you? Alphabet Salary Sacrifice can help you extend employee benefits at no cost, deliver savings, and reduce your organisation s carbon footprint. And it is a way to provide your drivers with a safer and cheaper cash alternative. If you d like to find out more, then talk to Alphabet today.

7 Choose Alphabet. Alphabet is a multi-marque fleet funding company, part of the BMW Group. We are known for our progressive mobility solutions for businesses and employees. We focus our systems, processes and the skills of our people solely towards providing industry-leading standards of service to fleet users. By choosing Alphabet, you will be working with a company that is committed to meeting your expectations without compromise. Find out more Tel: alphabet@alphabet.co.uk Alphabet (GB) Limited, Form One, 17 Bartley Wood Business Park, Hook, Hampshire RG27 9XA. Tel: Registered office address: Europa House, 5 Bartley Way, Hook, Hampshire RG27 9UF. Registered in England and Wales Alphabet (GB) Limited is authorised and regulated by the Financial Conduct Authority in respect of its credit and hiring regulated activities and is an appointed representative of BMW Financial Services (GB) Limited in relation to its insurance mediation activities. BMW Financial Services (GB) Limited is authorised and regulated by the Financial Conduct Authority. Disclaimer: The information provided in this guide is for general information purposes only and is correct to the best of our knowledge at the time of publication (April 2014). Neither Alphabet nor the author can be held responsible for any actions or consequences arising from acting on, or refraining from taking any action, as a result of reading this.